In the past few sessions, Dorman's shares sharply fell, but the stock is now coming back to a significant support level.
The car parts maker relies on strong fundamentals. In fact, its global sales rose 14% between 2012 and 2013 and the major mover of this significant improvement was the international business unit. Better margins are anticipated for the current fiscal year and with better sales figures this could result in a significant enhancement in terms of earnings. The consensus remains buyer among analysts as EPS upward revisions attest.
The security subscribes in a downward trend in the short term. In the mid-term, graphics show an accumulation phase within the rising wedge. The stock is trading within a range between USD 52.2 and USD 55.35 and recent drops drove it toward the crossing point between the bottom trendline and the short term support. This contact could lead to a rebound toward the resistance.
Therefore, the timing seems perfect for opening long positions on Dorman seeking to reach the USD 55.3 resistance. Nevertheless, the position must be protected by a stop under USD 52.2, avoiding these way bearish trades.
Dorman Products, Inc. is a supplier of replacement and upgrade parts in the motor vehicle aftermarket industry, serving passenger cars, light, medium, and heavy-duty trucks, as well as specialty vehicles, including utility terrain vehicles (UTVs) and all-terrain vehicles (ATVs). The Company is an aftermarket supplier of parts that are traditionally available to professional installers and consumers only from original equipment manufacturers or salvage yards. These parts include leaf springs, intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation (EGR) coolers, UTV windshields, and complex electronics modules. Its product classes include powertrain, chassis, motor vehicle body, and hardware. Its products are sold primarily through aftermarket retailers, including through their online platforms; dealers; national, regional and local warehouse distributors and specialty markets; and salvage yards.
DORMAN PRODUCTS, INC. 
